Hyperliquid Tightens XPL Contract Mark Price Formula
- Hyperliquid to apply stricter pricing formulas after XPL surge.
- New rules aim to limit future market manipulations.
- Measures implemented to protect investor interests.
On August 27, 2025, Hyperliquid responded to a dramatic 200% surge in XPL prices by tightening its mark price formula to safeguard against market manipulation.
The event highlights concerns over volatility and liquidity risk for traders, emphasizing the need for stringent controls in decentralized finance markets.
Hyperliquid’s Response to XPL Volatility
Hyperliquid has responded to a 200% XPL contract surge by formalizing a mark price formula. The change follows an extensive pricing volatility assessment after a significant market event.
A major deposit from address 0xb9c… fueled the spike by purchasing 15.2M XPL tokens. Improved pricing strategies will be employed to mitigate any market manipulations in the future.
Impact on Traders and Liquidity
The manipulative event heavily impacted traders, resulting in cascading liquidations and significant financial losses. Minority investors bore a collective loss totaling $16.6M.
“The marked price increased by approximately 2.5 times within a few minutes. During this period, the Hyperliquid blockchain operated normally… first executing liquidation according to the order book, and then initiating the Automatic Deleveraging (ADL) mechanism…” – Hyperliquid Team, Official Announcement, source
The incident underscores the necessity for robust liquidity controls to prevent such disruptive financial outcomes. Hyperliquid aims to shield users through tighter market constraints.
Community Reactions and Future Measures
The lack of a roadmap update initially caused uncertainty around technological advancements being prioritized. Community speculation continues without direct answers from leadership.
The Hyperliquid employs automatic mechanisms to avert sudden price exuberance and uses historical learnings to deploy preventive measures against rapid market manipulations. Investors have expressed mixed sentiments about the platform’s future priorities.
